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Executive Compensation: An Analysis Identifies ESG Leaders and Laggards
Understanding what distinguishes corporate leaders from laggards in the environmental, social, and governance (ESG) realm provides important guidance on emerging best practices for boards. In this fast-moving arena, Farient Advisors identified a small group of companies who stand out as leaders in incorporating stakeholder measures into their executive compensation plans.
Read More > 01.19.2023
Briefs

Tracking CEO Wealth—Who’s Up, Who’s Down
As the stock market goes so goes CEO wealth. A large part of a CEOs’ personal wealth is typically tied to the stock prices of the companies they lead. Thus, the value of CEO-owned stock across the S&P 500—down nearly 20% year to date—has mostly taken a beating. An analysis…
Read More > 12.20.2022
Briefs

Six Steps for Adhering to the SEC’s New Clawback Rule
Six Steps for Adhering to the SEC’s New Clawback Rule A new SEC rule that toughens the clawback of executive pay deemed to have been awarded under false, misleading, or mistaken circumstances that results in a financial restatement goes into effect in the new year. While some companies have…
Read More > 11.30.2022
Briefs

Sneak Peek: New 2023 Research Report Shows ESG’s Staying Power
Environmental, social, and governance (ESG) incentives in executive compensation are becoming more prevalent. For a third consecutive year, research from Farient Advisors in conjunction with the Global Governance and Executive Compensation Group (GECN) finds an increase in the use of stakeholder incentives that demonstrates a commitment to…
Read More > 11.07.2022
Briefs

Performance Shares Reconsidered
By Marc Hodak Consider an investment strategy of buying shares in companies that compensated their executives only with time-based equity, i.e., restricted stock or stock options and without performance shares. Anyone pursuing that strategy over the last decade would have outperformed the S&P 500 by an average of two percent…
Read More > 10.27.2022
Briefs

Executive Pay Increasingly Tied to DEI Goals
Linking DEI goals to exec pay isn’t going away anytime soon. Despite some pushback, tying executive pay to diversity, equity and inclusion (DEI) goals rapidly continues. According to new Farient research, more than one out of every three S&P 500 companies now factor DEI into compensation, sending a signal of…
Read More > 10.10.2022
Briefs

Gensler’s SEC Approves Pay Versus Performance Disclosure
Amendment Takes a Prescriptive Approach to Rulemaking The disclosure of linkage between executive compensation and financial performance is the thrust of a new pay versus performance disclosure rule approved on Thursday, August 25, by the U.S. Securities and Exchange Commission. In effect for the…
Read More > 09.12.2022
Briefs

Investor Dissatisfaction on Executive Pay Continues to Rise This Proxy Season
With more investors voting “no” on Say on Pay (SOP) than ever before… The number of large-cap companies that have received votes of 70 percent or below is on track to be the largest since SOP was implemented in 2011. In this Farient Brief, Eric Hoffmann analyzes the state of…
Read More > 06.27.2022
Briefs

Distilling The SEC’s Landmark Climate Disclosure Proposal
The Securities and Exchange Commission (SEC) recently issued its much-anticipated proposed climate disclosure rules that would require public companies in financial statements to report their greenhouse gas (GHG) emissions, exposure to climate risks, and climate-related metrics. The new rules are a significant step forward in standardizing public disclosures on environmental measures.
Read More > 04.13.2022
Briefs

Interview—From Best to Worst: ‘Madam Chair’ CEO Alicia Syrett and Farient CEO Robin Ferracone Talk Comp Committee Landscape
In the following interview, I dialogue with esteemed investor and experienced public company board chair Alicia Syrett. She is the CEO of the early-stage investment vehicle Pantegrion Capital (its name is a combination of passion and integrity). She is also the founder of Madam Chair, a…
Read More > 03.23.2022
Briefs

What Happens When Proxy Advisors Say No To Executive Compensation?
Executive Summary Institutional Shareholder Services (ISS) recommendations have more influence on Say on Pay votes than Glass Lewis (GL) ISS and GL provide consistent recommendations for Say on Pay (either both For or both Against) 88 percent of the time for companies in the S&P 500. This pattern is similar…
Read More > 02.18.2022
Briefs

Interview: Powering Business Away From Climate Risk
Recently, Farient Partner Dayna Harris had a chance to participate on a National Association of Corporate Directors’ (NACD) Climate Risk panel with Britt Ide. Britt is on the boards of NorthWestern Energy.
Read More > 12.07.2021
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